If it doesn't want to lose access to the next three billion smartphone buyers, it needs to solve this problem.

Munster thinks Apple's solution is a less expensive version of the iPhone in 2014.

He doesn't elaborate too much on this phone, but we'd posit that it should not just be a last-generation iPhone. We think Apple should make a unique phone that it sells for less.

Right now, when it rolls out a new iPhone, the previous models get $100 chopped off, so you have the iPhone 5 at $200, the iPhone 4S at $100, and the iPhone 4 at $0 with a carrier subsidy. All three phones are great, but there's something psychologically unsatisfying about buying a three year old phone.

Apple has never sold a "cheap" anything. It is a premium company that believes in charging a premium for its products.